How to Manage Money During Financially Hard Times
Whether you’re an older worker with seemingly few options to recoup significant investment losses or a younger worker with minimal or no investment savings at all, don’t let a difficult financial climate and financially hard times scare you into not taking any action at all.
Financial Tips for Turbulent Times
Take stock of your situation and formulate a plan by starting with the basics.
Pay Down Debt
Reduce the chokehold that credit cards have on your budget. Pay off the highest interest-rate card first, and then apply that payment to the next-highest interest-rate card. Stop charging.
Identify needs vs. wants, and then set priorities. Many so-called needs actually are wants in disguise.
Rebalance Your Stock Portfolio
Do your investment choices reflect your risk tolerance and investment strategy?
Keep Some Cash on Hand
Increase Your Contributions
Many stock prices are low. If possible, bump up your contribution.
If you’re in a position to, spread your money among a variety of investments:
- Financial Services
- Health Care
- and so on
Use Dollar-Cost Averaging
By having just $50 each paycheck automatically directed to a mutual fund, your contributions will purchase more shares when the price is low and fewer shares when the price is high.
If you’re close to retirement, consider hanging on to your current job longer than planned, if you can. Or, secure part-time work after retirement. This reduces the number of years you’ll dip into your investments and helps build additional savings.
Argent is ready to help during these financially hard times. Contact us today at (804) 748-9488 to see how we can help you.